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'Cadbury's defence document only reinforces our belief that there is a compelling strategic and financial rationale to combining these two companies and that doing so would be in the best interest of both companies' shareholders.'

Kraft, which also announced US competition clearance for the proposed deal, raised doubts over Cadbury's ability to meet its new guidance.

The takeover target yesterday outlined new long-term aims to deliver revenues growth of between 5 per cent and 7 per cent a year and improved profit margins.

'Cadbury is asking its shareholders to put their faith in possible future value creation based on a set of long-term targets, never before achieved by Cadbury and subject to significant risk and uncertainty,' said Kraft.

Cadbury was thrust into the bid spotlight in September when it said it had rejected a cash-and-shares merger with Kraft valuing the business at £10.2 billion.

Kraft turned hostile in its pursuit earlier this month, although it failed to improve the terms of its original approach, which is now worth less than in September due to declines in Kraft's share price.

The bid values Cadbury at less than the firm's current share price of just under 800p and experts believe Cadbury is holding out for as much as 850p a share.

Kraft's offer is so far the only one on the table, but rivals Hershey in America and Italian chocolate group Ferrero have said they are considering their options for Cadbury.

Hershey, which makes Kisses chocolates, already has a business relationship with Cadbury as it holds a licence to make Dairy Milk bars and Cadbury Creme Eggs in the US and is therefore seen as a favourite to step in with a counter-bid or potential 'white knight' deal.

Analysts believe Cadbury may seek to thwart Kraft's deal by teaming up with the likes of Hershey, either by forming further trading partnerships or through stake building to effectively block Kraft from gaining the necessary shares to gain control.